Coca-Cola Continues Unethical and Dishonest Practices in India

Overview..
The Indian government forced Coca-Cola out of the country in 1977. The company returned in 1993 Each bottling plants extracts up to 1.5m litres of water everyday from the ground. It takes nine litres of clean water to manufacture a litre of Coke. In 2000 Coca-Cola opened a plant at Plachimada, a village in Kerala to produce 1.2m litres of coke every day.

 The conditional license granted by the local panchayat authorized the use of motorized pumps But the company drilled more than six wells & illegally installed high-powered electric pumps to extract millions of litres of pure water. The level of the water table fell from 45 to 150 meters below the surface.

 The company started dumping waste outside causing a serious health hazard. The court gave Coca-Cola a notice to cease water extraction The theft of water was not only limited to kerala Overexploitation of groundwater soon started in Kaladera

Kala Dera - Thirsting from Coca-Cola

Kala Dera is a large village outside the city of Jaipur. Agriculture is the primary source of livelihood. Coca-Cola started its bottling operations in Kala Dera in 2004, and within a year, the community started to notice a rapid decline in groundwater levels

 Kala Dera lies in an overexploited groundwater area and access to water has been difficult. Summers are particularly intense in the area, when water shortages are most acute. Moreover summer months are also when CocaCola reaches its peak production. Coca-Cola bottling plant in Kala Dera continues extracts the most water, making already existing water shortages even worse.

Unusable Well in Kala Dera Showing Depleted Water Level

 For farmers, loss of groundwater translated directly into loss of income. For many children it meant leaving schools to provide a much needed helping hand in household since the women had additional burdens.

Community response

The community in Kala Dera organized itself to challenge the Coca-Cola company for the worsening water conditions - through extraction and pollution - and demanded the closure of the Coca-Cola bottling plant.

Company's response
The company, in usual fashion, denied any wrongdoing, blaming "outsiders" for the increasing local community opposition

Forced Assessment Validates Community Concerns

International Support to the opposing parties campaigns was at the prestigious University of Michigan in the US independent assessment of its operations in India Validating the concerns

Stop Using Groundwater in Kala Dera

The assessment noted that the plant's operations would continue to worsen water situation

1. 2. 3. 4.

Coca-Cola should no longer utilize the overexploited groundwater resource in Kala Dera Transport water from the nearest aquifer that may not be stressed Store water from low-stress seasons Relocate the plant to a water-surplus area Shut down this facility The community in Kala Dera welcomed the recommendations and waited for companys response.

Coca-Cola's Response - Unethical and Dishonest

Coca-cola took seven month to respond Coca-cola not respond to the concern raised Unethical and dishonest campaign Chosen to continue the operation Continued in misery of thousand people

Criminal Negligence
Coca-Cola is supposed to have conducted an Environmental Impact assessment. Company started its operations even though it found to be "overexploited 1998. Criminal negligence, it not criminal negligence Describes itself as a "hydration" company.

Misrepresenting Facts by Coca-Cola

1) Coca-Cola Forced to Agree to Assessment - Business with the University of Michigan - TERI assessment 2) Coca-Cola Does Not Meet its Own Standard - TCCC standards - No single plant meets Standard

3) Coca-Cola Not in Compliance with Government Regulations - Effluent discharge requirements".

4) Coca-Cola Fails to Mention Shut Down Plant Recommendation - Shut down the bottling plant.

COKES Corporate Social Responsibility - A Scam?

The Coca-Cola steps up its corporate social responsibility announcing to the world that it is a green and socially responsible company. --- but was not the case at kala dera Rainwater harvesting --- Dilapidated and a Bluff

 The company announce its rainwater harvesting initiatives in India It also announce that the company will become "water neutral" in India by 2009.

Some serious concerns about Coca-Cola's claims on rainwater harvesting

The company announced that it has recharged five times the amount of water it has used. When asked to back it up with numbers, Coca-Cola does not provide any. Coca-Cola states that they "will install measuring devices that will verify the amount of water recharged." If they do not have measuring devices installed to verify the amount of water recharged, how can they make a claim of recharging five times the water that they have extracted?

 People across Rajasthan are well known in rainwater harvesting and have been harvesting rainwater long before Coca-Cola started. Coca-Cola started rainwater harvesting to overcome response to the growing campaigns against its water mismanagement. Coca-Cola was bluffing people with its rainwater harvesting. The rainfall in the area is too low, and the amount of rainfalls fluctuates a lot contributing to 30 days of rains every year

80% of those rains come in just two or three days and hence rainwater harvesting is simply not efficient

 Based on their rainwater harvesting initiatives Coca-Cola company has announced that they will become water neutral in India by 2009 Coca- cola will recharge more water than the use from the groundwater resource. ---A BLUFF

Coca-Cola Threatens Top Indian Photographer with Lawsuit

Billboard by: Sharad Haksar

 Billboard highlights the severe water shortages being experienced by communities that live around Coca-Cola's bottling plants across India.
In 2005, Coca-Cola's Indian subsidiary, sent a letter to Mr. Haksar threatening him with serious legal actions unless the billboard was replaced 'unconditionally and immediately'. Coca-Cola would seek Indian Rupees 2 million (US$ 45,000) for "incalculable damage to the goodwill and reputation" of CocaCola, and also sought an 'unconditional apology in writing'. Mr. Haksar said that he had no intentions of issuing any apology because he has not committed anything wrong.

 Massive rural movement has emerged to hold the company accountable for creating water shortages and polluting the remaining water and soil.
Live 8 concerts pulled out with negotiations with CocaCola over sponsorships because of public opposition, spearheaded by the India Resource Center.

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